Johnny Karmo knows his ‘Market’
Some people seem to have a natural talent for their occupation.  They can find success where others have struggled � almost as if they have special built-in job-related instincts.   Johnny Karmo is a grocer with a natural talent for his industry.  His three suburban Detroit specialty food stores are busy, successful and growing, despite Michigan’s sluggish economy.

All three stores cater to the high demands of his upscale clientele, all three continue to show sales growth and, remarkably, two of his stores are located on the same street, just one mile apart. 

Two of Karmo’s stores are called Market Square.  His first is located on Southfield Road at 14 Mile in Birmingham and his other Market Square is on Walnut Lake Road in West Bloomfield.  Both are what he calls “neighborhood grocery stores.”  They cater to the specific needs of the people who live around them.  The stores feature extensive prepared foods, catering departments and meat sections.  Many local residents come in a few times a week to pick up dinner as they head home from work.  Both Market Square stores also carry an extensive wine selection with other departments � including produce, health and beauty, frozen foods and packaged goods � being kept deliberately small to save space.

Renowned architect Victor Saroki designed both Market Square stores to showcase the products � particularly the meats, prepared foods and bakery offerings � and also provide a comfortable, warm environment.  These are neighborhood stores where customers are known by their first name and where locals feel welcome and appreciated. 

Karmo’s newest store is called Market Fresh.  Interestingly, it is just one mile south of his Birmingham Market Square store, on Southfield Road at 13 Mile in Beverly Hills.  This store is larger, and � as Johnny explains � caters to a different clientele.  But how can that be?  The stores are on the same road, just one mile apart. 

“It’s funny, Birmingham residents don’t travel south to shop.  They are pretty loyal and like to frequent the stores in their city.  Most of my Market Square customers are Birmingham neighbors,” Johnny explains. 

“My Market Fresh customers are primarily from Beverly Hills and Southfield.  These customers usually don’t travel into Birmingham to shop.  So, even though my stores are just one mile apart, they really service two different areas,” he adds.

Johnny has owned Market Fresh for a little over three years.  It was formerly called Vic’s and was owned by Vic Ventimiglia. 

Back 20 years ago, Vic’s was a small produce market located kitty-cornered from the present Market Fresh location.  “Vic was a friend of mine.  We would golf together,” Johnny remembers with a smile.  “When he moved his store across the street and built a larger, more upscale facility, I thought for sure my business would suffer…but it didn’t.  Instead, business increased!  I told Vic that if he ever wanted to sell, that he should talk to me.” 

That happened just after Christmas 2005. 

Once he purchased the store, Johnny began remodeling.  Again, he used the services of architect Victor Saroki to redesign the store.  The actual remodeling took a couple of years �- as Johnny did it in sections so as not to disturb his customers. 

Today, Market Fresh is a store designed to fill the needs of its customer base.  Johnny emphasizes that it is primarily a produce market.  Fresh fruit and vegetables are artfully displayed in kiosks and refrigerated cases.  Fresh flowers greet guests as they enter the store.

However, the deli, bakery and fresh meat departments all look tempting and play a key role in the store’s success, as does the grocery section.  “We bought all new fixtures, widened the aisles and stocked shelves to their capacity,” Johnny says. 

Walking down Market Fresh aisles is a treat.  This is the kind of place where customers go to find that special ingredient for the Thai recipe that they have been meaning to try or the heart-healthy organic cereal that their doctor recommended.

One aspect of the store that is particularly intriguing is the check-out.  Instead of the traditional row of check-out counters, Market Fresh has a one-line system with a video monitor that directs guests to move to the next available clerk.  Registers are aligned on one long counter, and product is placed on one side of the register by the customer, scanned and then bagged by the clerk.  Once bags are full, they are lifted to the same, long counter for the customer to retrieve.  The system is similar to that which is used at Whole Foods and at Border’s Book Stores.

“By going with the single-line check-out, we were able to get one more aisle for product,” says Johnny.  “During the holidays, the line snaked through the store and looked daunting to some customers.  But the surprising thing was that our customers helped each other.  They explained that the line was moving really fast.”

Johnny observed the line from his office on the second floor and noted that it took only 3-1?2 minutes for each customer to get to a register.  The single-lane checkout worked, even under extensive pressure, and kept customers happy. 

So, now that Johnny’s three stores are all busy, successful and gaining market share, what are his future plans? 

“I purchased property across the street from the West Bloomfield Market Square store and we are going to build a new facility and move the store.”  Johnny says the new Market Square will have more space for catering and prepared foods. “Our present store is really too small.  The new building will allow us to expand and grow,” he adds.

So, despite Michigan’s sluggish economy, Johnny Karmo has found a way to overcome that challenge and grow his business.  Knowing his customers and being willing to change as their desires change is the key to his success.

Michele MacWilliams is Vice President of Communications for the Associated Food Dealers. Reprinted with permission from the AFPD Food & Petroleum Report, March, 2008.